The end of the tax year is soon approaching and from the 6th April car tax prices will be changing. Both petrol and diesel vehicles will now cost more to tax and the changes will impact personal car tax and also effect taxes on company cars. Your tax is calculated by the Co2 emissions your vehicle produces, this means vehicles with larger engines will generally produce more emissions and as a result will be charged a higher rate of tax.
The emission tests on vehicles have been improved from NEDC (New European Driving Cycle) to WLTP (Worldwide Harmonised Light Vehicle Test Procedure). This method of testing provides the lab with more accurate measurements on car emissions. It also provides a better analysis of how a car will perform on the road, giving them more realistic results.
The amount of car tax due is now going to be calculated from the WLTP standards. Because of the more accurate results from this method of testing, many vehicles are now likely to register as having higher emissions, making them liable for more tax.
So if you’re planning on buying a new car soon, it could work out more beneficial for you to bring this purchase forward before the tax change in April. Buying a car after the 6th could mean that you pay a lot more in VED tax than you would have paid if you bought the vehicle in March.
If you are planning to invest in a new car after the change in April, an Electric vehicle could be a great option for you. EV’S are overall better for the environment and are also exempt from car tax (excluding premium vehicles) and BIK (Benefit In Kind) for company cars.
Charging points are now more widely available, Croyland Car Megastore’s dealership in Rushden even have their own charging points to help encourage the use of Electric cars on the roads. So if you’re looking to upgrade your car, choosing an EV over a petrol or diesel fuelled car could be a more economical option.